Best Practices for Appraising Unique Properties
by Melvin Ngayan, Director of Appraisal Services East When it comes to appraising unique properties for insurance replacement cost —like zoos, historical buildings, arenas, monuments, statues, and one-of-a-kind architectural marvels— the process can be intricate and demanding. As a risk manager for the insured organization, you become a guardian of these historically-, functionally- or architecturally-important […]
Reviewing Property Appraisal Data for Better Quality Control
by Gary Tate, Quality Control Manager Ensuring Appraisal Data Integrity When it comes to determining insurance ratings and rates, having accurate insurance appraisal data is crucial for more informed decision-making — both for insureds and insurers alike. Quality control reviews play a pivotal role in maintaining data integrity, safeguarding against errors, and enhancing data confidence. […]
Property Valuation Trend Factors for 2024 and How to Deal with Large Fluctuations
Understanding trend factors and how to manage their impact on property valuation is crucial in today’s dynamic insurance landscape. As organizations navigate through market fluctuations and economic shifts, the replacement cost value of properties can experience significant increases over time, directly influencing insurance premiums and risk exposure. Replacement cost value represents the expense required to […]
Replacement Costs and Understanding the Value of a Building for Insurance Purposes
Replacement, reproduction and reconstruction costs… oh my! There are many different approaches to establishing the value of a building or structure. Selecting the best option for you will not only depend on your ultimate goal but also the manner in which the value is determined. Let’s take a look at the six different types of […]
Convective Storm Modeling: The Difference is in the Details
You’re likely already familiar with catastrophe (CAT) modeling, a method of determining risk exposure in hurricane- or earthquake-prone regions. But look out your window right now. Do you spy dark gray rainclouds on the horizon? If so, you might just be looking at a convective storm, and this common weather pattern is changing the face […]
Earthquake Risks: How Architectural Features Affect Seismic Resistance
The age-old saying, “The bigger they are the harder they fall” is believed to have originally come from boxing. But for those of us in property risk management, it’s also a fair description of how buildings of certain structural types can react to seismic events. In fact, there are a lot of architectural and logistical […]
What’s in a Replacement Cost Value? (And What’s Not!)
by Sandra Hou, Valuation Consultant In the insurance industry, replacement cost value (often referred to simply as “replacement cost”) is one of the most common and acceptable values used to insure properties. In my line of work, we are often hired by risk pools to value their members’ properties for replacement values, in order to make […]
Property Risk Management for Winter Storm Damage
When winter weather ravages regions unaccustomed to the icy attentions of Jack Frost (like one perilous February in Texas) the effects can be devastating and linger well-after the winter fury itself has passed. We’re talking about winter weather-related property damage, and the National Oceanic and Environmental Administration (NOAA) indicates that between 1980 and 2020, winter […]
Windstorm Mitigation: How Architectural Features Affect Storm Resistance
In the past, we’ve discussed how architectural details affect earthquake resistance, and how documenting those details for your insurance Statement of Values (SOV) can help you secure the right insurance coverage at the best rates. So today, we’ll talk about the other common way your building can be affected by risk — windstorm. Like the seismic […]
2022 Construction Cost Trends and Property Valuation
COVID-19’s business ramifications extend well-beyond the more popularly-discussed healthcare and restaurant industries. Throughout 2021 and into ’22, the construction industry faces skyrocketing costs, presenting significant challenges for new construction projects as well as property repair and replacement work. This, in turn, creates a dilemma for organizations with large property portfolios. How do you place value […]